HB 710/FN/LM (BR 2340) - M. Treesh
AN ACT relating to revenue and taxation.
Create a new section and amend various other sections of KRS Chapter 141 relating to individual income tax to allow federal amounts for standard deduction and 50% of personal exemption, require federal filing status, eliminate the low income credit, and establish a 6% tax rate for all taxable income; create a new section and amend various sections of KRS Chapter 134 to provide a $20 credit against the ad valorem tax on motor vehicles; apply credit against state portion of tax; hold county clerk commissions harmless; create 28 new sections of KRS Chapter 138 to establish a communications excise tax of 7% of the sales price of any communications service that originates or terminates in this state; exclude from the tax governmental entities, churches, and schools; establish a "communications excise tax fund" and a "communications excise tax local fund" to distribute a portion of the communications excise tax to participating local governments; establish a "communications excise tax local distribution fund oversight committee" to monitor the local distribution fund and oversee distribution amounts; prohibit local governments from levying most taxes or fees on communications services; and specify that any tax savings from the change to this method of tax shall belong proportionately to the customers of the provider; amend KRS 132.010 to modify the definition of real property of companies providing communications services; create a new section of KRS Chapter 132 to indicate that only the Revenue Cabinet shall value the tangible personal property of companies providing communications services, and shall allocate that value to local districts where the property is located; amend KRS 136.120 to make all providers of communications services subject to the public service company property tax; amend KRS 139.100 to remove communications services from the sales tax; amend KRS 141.120 to specify how companies providing communications services shall allocate and apportion income; amend KRS 160.613 to remove telephonic and telegraphic communications services from the 3% gross receipts tax for schools; amend various KRS sections to conform.
Feb 20-introduced in House
Feb 21-to Appropriations and Revenue (H)